EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 3, December 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ INDIAN INDUSTRY IN THE GLOBAL SCENARIO

DR.R.ANITHA*

*Associate Professor, Department Of Management, Sasi Creative School of Business, Coimbatore.

ABSTRACT

India is the only country in the world which produces all varieties of silk namely tasar, muga and mulberry. India occupies a predominant position in the world and it is the second largest producer of silk after . Though Indian silk industry occupies a predominant position in the world, its production is only 15% of total world production and more than 80% of production is contributed by China. India’s export has adequately progressed during the study period with both quantity and value of export showing high and significant growth. This increased growth is also accompanied by higher volatility. With Japanese technology and cooperation, Central Silk Board has recently been able to evolve & popularize Bivoltine silkworm races which can yield raw silk of international standards thereby increasing production. With these races, we can expect reforms in the marketing and processing of cocoons, India can hope to develop its sale of domestic raw silk beyond its own borders.

KEYWORDS: Bivoltine, Cocoons, Export, Import, Problems,Production, Silk, Strengths. ______

INTRODUCTION

The Silk industry has a distinctive position in India, and plays a significant role in Industry and Export. India is the 2nd largest producer of silk in the world with 19690 MT (2008- 09) and also the largest consumer of silk in the world and contributes 15% of the total world raw silk production. Geographically, Asia is the main producer of silk in the world and manufactures

over 95 % of the total global output. Although there are over 40 countries on the world map of silk, bulk of it is produced in China and India, followed by , Brazil and Korea. China is the leading supplier of silk to the world with an annual production of 104000 MT (2008), out of which the Mulberry raw silk production is 70980 MT.

India produces a variety of called Mulberry, Tasar, Muga and Eri, based production of raw silk, which is the obtained out of cocoons spun by certain species of insects. The major activities of comprises of food-plant cultivation to feed the silkworms which spin silk cocoons and reeling the cocoons for unwinding the silk filament for value added benefits such as processing and .

It has a strong tradition and culture bound domestic market of silk. In India, mulberry silk is produced mainly in the states of Karnataka, Andhra Pradesh, Tamil Nadu, Jammu & Kashmir www.zenithresearch.org.in and West Bengal, while the non-mulberry silks are produced in Jharkhand, Chattisgarh, Orissa

and north-eastern states.

100

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 3, December 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ Historically, sericulture was introduced for the first time, into China by Hoshomin, the Queen of China. For a long time, sericulture was considered to be a national secret by the Chinese Government, and as an industry it was not known in other countries. Later, it was introduced into Europe and Japan as well. According to reports available, sericulture was introduced into India about 400 years back and the industry flourished as an agro-industry till 1857, with an annual production of two million pounds of silk fibre. The industry survived the attack of the Pebrine disease during the period from 1857 to 1895. However, after 1928, the sericulture industry showed a decline in its production owing to the fierce competition from advanced sericulture countries, such as Japan, China and European countries. After Independence, the industry is flourishing as an agro-industry, giving employment to over 7 million people in the Country.

OBJECTIVES OF THE STUDY

1. To study the performance of Indian silk industry in the global scenario

2. To analyze the strengths and problems of Indian silk industry

PRODUCTION OF SILK

The table 1 shows the Production of raw silk in India during the years 1999-00 to 2006- 07. The year to year production of all silk varieties shows a growth trend. In 2006-07, Mulberry accounts for 89.45%, Eri 8.04%, Tasar 1.89%, and Muga 0.62%, of the total raw silk production of 18475 MTs in the country. But among the four varieties of silk produced, Mulberry accounts for 89.45% of production whereas the other three varieties contribute lesser percentage to the total production.

TABLE NO.1 PRODUCTION OF RAW SILK IN INDIA(IN METRIC TONES)

% to % to % to % to Mulberry total Tasar total Eri total Muga total Total Years

1999-00 13944 91.65 211 1.39 974 6.40 85 0.56 15214

2000-01 14432 91.01 237 1.49 1089 6.87 99 0.62 15857

2001-02 15842 91.30 249 1.44 1160 6.69 100 0.58 17351

2002-03 14617 89.57 284 1.74 1316 8.06 102 0.63 16319

2003-04 13970 88.74 315 2.00 1352 8.59 105 0.67 15742

2004-05 14620 88.61 322 1.95 1448 8.78 110 0.67 16500 www.zenithresearch.org.in

101

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 3, December 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ 2005-06 15445 89.25 308 1.78 1442 8.33 110 0.64 17305

2006-07 16525 89.45 350 1.89 1485 8.04 115 0.62 18475

Source: CSB, Bangalore (In Metric tonnes)

Mulberry silk is produced extensively in the states of Karnataka, West Bengal and Jammu and Kashmir. About 85 per cent of the country's production is contributed by the Karnataka state by rearing multivoltine hybrids of silkworm and this activity enables the sericulturists to harvest five to six crops a year. Jammu and Kashmir, owing to its salubrious climate during autumn and spring, is producing silk by rearing univoltine silkworms. Other states, namely, Andhra pradesh, Assam, Tamil Nadu, Uttar Pradesh,Himachal Pradesh and Punjab, contribute roughly 1.8 percent to the total production of mulberry silk in India. Tasar silkworms are reared traditionally by the tribal people of Madhya Pradesh,Bihar, Orissa. These 3 states mainly contribute to the production of tasar silk in the country. The recent rearing of Antherea royeli & Antherea perniyi has enabled the country to produce the oak tasar silk in the sub-Himalayan belt & in Manipur.

Muga silk is grown exclusively in Assam & it is still considered to be a ceremonial dress by the local population. Assam produces as much as 90% of in the country by rearing eri silkworms on castor leaves.

TABLE NO.2 WORLD MULBERRY RAW SILK PRODUCTION (QUANTITY IN TONNES)

Country 2005-06 2006-07 2007-08 2008-09 2009-10 Total

8780 80.2 9310 80.8 7800 79.0 7098 77.9 8400 81.0 41388 China 0 2 0 9 0 1 0 6 0 6 0

1544 14.1 1652 14.3 1624 16.4 1561 17.1 1632 15.7 80147

India 5 1 5 6 5 5 0 4 2 5

Japan 150 0.14 150 0.13 150 0.15 150 0.16 90 0.09 690

Brazil 1285 1.17 1387 1.21 1220 1.24 1177 1.29 811 0.78 5880

Korea 150 0.14 150 0.13 150 0.15 135 0.15 135 0.13 720 Republic

Uzbekista 0.87 0.83 0.96 0.95 0.72 4465 950 n 950 950 865 750

Thailand 1420 1.30 1080 0.94 760 0.77 1100 1.21 665 0.64 5025 www.zenithresearch.org.in

102

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 3, December 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ Vietnam 750 0.69 750 0.65 750 0.76 680 0.75 550 0.53 3480

Others 1500 1.37 1000 0.87 500 0.51 350 0.38 304 0.29 3654

Source : ( e-mail); ISC web-site update as on January,2010;

SS:11-05-2010

Table No.2 shows the world mulberry raw silk production from the years 2005-06 to 2009-10. China contributes more than 80% of world mulberry raw silk production and India contributes nearly 15% to world mulberry raw silk production. India and china are the major contributors of world mulberry raw silk and other countries together contribute less than 5% to world mulberry raw silk production.

CHART 1 SHOWING TOTAL WORLD MULBERRY PRODUCTION FROM THE YEAR 2005-06 TO 2009-10

China

India

Japan

Brazil

Korea Republic

Uzbekistan

Thailand

Vietnam

Others

TABLE NO.3 WORLD RAW SILK PRODUCTION

(QUANTITY IN TONNES)

Country 2005-06 2006-07 2007-08 2008-09 2009-10 Total

Qty % Qty % Qty % Qty % Qty %

China 10536 81.7 13000 84.4 10842 82.6 9862 81.2 10400 81.8 54640

0 6 0 5 0 2 0 4 0 9 0 www.zenithresearch.org.in www.zenithresearch.org.in

India 17305 13.4 18475 12.0 18320 13.9 1837 15.1 19690 15.5 92160

3 0 6 0 3 0

103

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 3, December 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ Japan 150 0.12 150 0.10 150 0.11 95 0.08 90 0.07 635

Brazil 1285 1.00 1387 0.90 1220 0.93 1177 0.97 811 0.64 5880

Korea 150 0.12 150 0.10 150 0.11 135 0.11 135 0.11 720 Republic

Uzbekist 950 0.74 950 0.62 950 0.72 865 0.71 750 0.59 4465 an

Thailand 1420 1.10 1080 0.70 760 0.58 1100 0.91 665 0.52 5025

Vietnam 750 0.58 750 0.49 750 0.57 680 0.56 550 0.43 3480

Others 1500 1.16 1000 0.65 500 0.38 350 0.29 304 0.24 3654

Source : Silk industry in China( e-mail); ISC web-site update as on January,2010;

SS:11-05-2010

Table No.3 shows the world raw silk production during the years 2005-06 to 2009-10. China tops the world raw silk production by contributing more than 80% to the world production. India contributes more than 13% to the world production and the rest of the countries contribute less than 1% to the world production of raw silk. This shows that India and china together contribute more than 90% of world raw silk production.

Among the developing countries, India enjoys a very favourable position of the present status of silk production owing to the low cost of labour. Sericulture is ideally suited for improving the rural economy of the country, as it is practiced as a subsidiary industry to agriculture. Recent research has also shown that sericulture can be developed as a highly rewarding agro-industry.

CHART 2 SHOWING TOTAL WORLD RAW SILK PRODUCTION FROM THE YEAR

2005-06 TO 2009-10

China India Japan Brazil Korea Republic Uzbekistan

Thailand www.zenithresearch.org.in www.zenithresearch.org.in

Vietnam

104

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 3, December 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ EXPORT AND IMPORT PERFORMANCE OF SILK

India exports considerable quantity of silk goods and the value of these silk goods is more than 15 per cent of the total raw silk production. India’s export includes Dress Materials, Readymade Garments, and Made-up articles for interior decoration. India’s export has adequately progressed during the study period with both quantity and value of export showing high and significant growth. This increased growth is also accompanied by higher volatility. India exports mainly to 10 countries viz., USA, UK, Kong, German People Republic, , , , Saudi Arabia, UAE and Singapore. The share of total Indian exports to these 10 countries constitutes 80 per cent.

TABLE NO.4

EXPORT OF SILK FROM INDIA

(RS IN CRORE)

Year Exports Trend value

(Rs) (Rs)

1997-98 1006.43 1422.85

1998-99 999.45 1593.74

1999-00 1755.55 1764.64

2000-01 2421.98 1935.53

2001-02 2359.56 2106.43

2002-03 2294.05 2277.32

2003-04 2779.19 2448.22

2004-05 2879.56 2619.11

2005-06 3194.20 2790.01

2006-07 3338.35 2960.90

2007-08 2727.87 3131.80

2008-09 3178.19 3302.69

2009-10 2892.44 3473.59 www.zenithresearch.org.in

105

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 3, December 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ 2010-11 3644.48

2011-12 3815.38

2012-13 3986.27

2013-14 4157.17

Source: CSB, Bangalore

Including Silk Yarn, Fabrics & Made-ups, and silk RMG.

The table 4 shows the export of silk goods from India and trend value estimated from the year 1997 to 2014. The trend value for the years 1997-98, 1998-99, 1999-2000, 2007-08, 2008- 09 and 2009-10 are more than the actual value. In these years, silk goods exports show an unsatisfactory trend. The trend value of Growth of silk exports in India 2005-06 and is less than the trend value in the periods, 2000-01, 2001-02, 2002-03, 2003-04, 2004-05 and 2006-07. It shows the satisfactory trend in these periods. In case of future prediction, the estimated growth of silk exports from India will be 4157.17 cores of silk exports in the years 2014. The major silk trading countries in the world are India, United States, Germany, Italy, France, Australia, Japan, China, and Thailand. Germany is the largest consumer of Indian silk. With substantial government and international subsidies for silk projects and marketing schemes, the industry has been expanding rapidly over the last few years. Silk exports too are growing rapidly.

TABLE NO.5

IMPORT OF RAW SILK

VALUE IN RS.MILLION

Year Quantity in tonnes Value

(Rs.)

1997-98 1876 2183.31

1998-99 1984 2593.64

1999-00 5018 4127.44

2000-01 4713 4732.61

2001-02 6808 6247.30

2002-03 9054 6471.50 www.zenithresearch.org.in www.zenithresearch.org.in

2003-04 9258 6291.7

106

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 3, December 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ 2004-05 7948 6374.3

2005-06 8383 7797.1

2006-07 5565 6733.7

2007-08 7922 7344.4

2008-09 8392 9030.6

2009-10 7338 9337.0

Source: Ministry of in India

The Table 5 shows the import of raw silk between 1997-98 and 2009-10. The year to year continuous increase in imports of silks shows that domestic production of raw silk is not adequate to meet the domestic and export demand. It is estimated that against the demand of around 26,000 ton per annum the domestic production is around 17300 tonnes. The gap of nearly 8700 tones in demand is mainly on account of the fact that high-grade quality mulberry raw silk is not being produced in the country to the extent required by the industry. This mulberry raw silk is basically required in the power industry, for export purposes, and to some extent in the handloom industry for warp purposes.

TABLE NO.6

IMPORT OF SILK YARN AND FABRICS

VALUE IN RS. MILLION

Year Silk yarn & fabrics % of import

1999-00 619.75 1.62

2000-01 910.21 2.38

2001-02 1729.94 4.53

2002-03 2930.4 7.68

2003-04 5298.9 13.88

2004-05 8030.6 21.04

2005-06 9645.8 25.27 www.zenithresearch.org.in

2006-07 9004.9 23.59

107

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 3, December 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ Source: Ministry of Textiles in India

Table No.6 shows an increase in the import of silk yarn and fabrics from the year 1999- 00 to 2006-07. The import of silk yarn and fabrics was 1.62 in the year 1999-00 and it rose to 23.59% in the year 2006-07.

STRENGTHS OF SERICULTURE INDUSTRY

Sericulture has been identified as an occupation of low investments, employment creating and income generating. It has been found that sericulture is highly profitable as compared to many other crops. Sericulture involves simple technologies, easy to understand and adopt even by illiterate farmers and it gives returns in quick succession yielding income in every two or three months. Sericulture does not involve hard labour and rearing of silkworms is generally attended to by women and old people. Sericulture does not require sophisticated machinery and it involves use of simple appliances. Mulberry plants can be grown in any type of soil even in forest fringes, hill slopes and watershed areas. Sericulture ideally suits even in rain fed conditions because of its low cost of production and higher returns than any other crop. Mulberry plant withstands severe drought conditions and gives at least some income for sustenance while other agriculture crops wither away. Sericulture would be a more advantageous industry for improving the economy of retarded section of the society like scheduled caste and scheduled tribes. Non- mulberry sericulture is largely practiced by the tribals. Sericulture ideally suits small and marginal farmers.

In developing countries like India, agriculture and agro-based industries play a vital role in the improvement of rural economy. The limited availability of land, the limited cash returns, and agriculture being confined to one or two seasons in the year, have made villages to look for supporting rural industries, such as sericulture. Agriculture and sericulture are adopted simultaneously by the agriculturists in regions where the ecological conditions are favourable. In India, over three million people are employed in various fields of sericulture. It is a cottage industry and provides ample work for the womenfolk in the rural areas in rearing silk worms, while the male members work in the fields. Recently the enforcing of new ideas by research institutions both in mulberry cultivation and silk-worm-handling among sericulturists, the

industry is now practised as a main profession and as a major cash crop of the country.

The strengths of silk industry can be summarized as follows:

Enormous production capacity

Efficient raw material manufacturing capacity

Large pool of skilled and cheap labor

Entrepreneurial skills

Enormous export potential www.zenithresearch.org.in www.zenithresearch.org.in

Large domestic market

108

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 3, December 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ Very low import content

Flexible silk manufacturing systems

The strength of this industry lies in its wide base, the sustaining market demand pull especially from the Indian handloom weaving sector, the infrastructure created by the national sericulture project and the research and training capabilities.

PROBLEMS OF INDIAN SERICULTURE INDUSTRY:

Though sericulture is ideally suited for improving the rural economy of the country, as it is practiced as a subsidiary industry to agriculture, it is hindered by various factors like imports of cheap and alternative textiles from other Asian neighbours, use of outdated manufacturing technology, primitive and unscientific "reeling" and "weaving" techniques, use of poor quality seeds, low production of bivoltine seeds, use of non-graded and diseased seeds, poor knowledge of farm disease amongst farmers, poor supply chain management ,huge unorganized and decentralized sector, high production cost, recurring droughts and increased import of silk from China and accompanied with the following problems like:

1. Price fluctuation

2. Absence of proper market

3. Long distance to market

4. Lack of transport facilities

5. Absence of storage facilities

6. Poor information on market trend.

7. Lack of finance

CONCLUSION

India is the unique country in the world where all the four varieties of silk namely mulberry, tassar, eri and muga are produced. Today the Indian silk industry is already a major player in the global scenario and the growth prospects for the industry seem to be buoyant. Favorable climatic conditions and participation of large number of women in sericulture industry will lead to the development of silk industry to a greater height. Measures like the encouragement of additional technological and economic research in the various aspects of sericulture, standardization and quality control of silk and silk products, provision of quality seeds, imparting knowledge among the farmers regarding farm disease and rationalization of marketing and stabilization of prices of silk cocoons and raw silk, it could expand rapidly than

ever before. www.zenithresearch.org.in www.zenithresearch.org.in

Though, this sector has been identified as a sector of the Indian economy with strong

potential to create jobs and able to contribute to foreign trade, it is not even nearer to the

109

EXCEL International Journal of Multidisciplinary Management Studies Vol.1 Issue 3, December 2011, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ production of china. China produces more than 80% of raw silk while India produces only 15% of total world production. With Japanese technology and cooperation, Central Silk Board has recently been able to evolve & popularize Bivoltine silkworm races which can yield raw silk of international standards thereby increasing production. With these races, we can expect reforms in the marketing and processing of cocoons, India can hope to develop its sale of domestic raw silk beyond its own borders.

REFERENCES

JOURNALS

 Mamatha Girish (2004) “Sericulture-based optimum farming system models for small farmers”productivityPp.307 -311

 Devasurappa (2004) in his study “Silk Industry in Karnataka” Tamilnadu Agriculture University, Coimbatore.

 Murugesh Muthuswami and Subramanian (2006) “Silk Production In India”Kisan World Pp.23-24

 Ram Kumar (2007) “Economics of silk Industry in India” Tamilnadu Agriculture University

 Murugesh, Mahaligam and Subramanian (2007), ‘Ericulture – A new silk prospect’, Pp. 21 – 25.

 Murugesh (2007), ‘Silk and its non-conventional uses’, Kisan world, Pp.21 – 24

 Ravindra Kumar Dr.(2008), ‘ and its prospects in Jharkhand’, Kurukshetra, Pp.41 -45.

WEBSITES

 http://www.tnsericulture.gov.in/prototype2/images/template1_01.gif

 http://www.indiansilk.kar.nic.in/

 http://texmin.nic.in/Silk%20Industry.pdf

 www.krishiworld.com/html/seri_ind1.html - 17k.

 www.amazon.com/Sericulture-India-P-Venkata-Narasaiah/dp/8170245087 - 214k

 Report of The working group on Textiles & jute industry for the eleventh five year plan (2007-2012) Government of India Ministry of textiles

 http://indiansilk.kar.nic.in/rti/CO/WorldRawSilkProduction.pdf www.zenithresearch.org.in

 http://www.scribd.com/doc/55511204/4/WORLD-RAW-SILK-PRODUCTION

110